WORK IN-PROGRESS Media Policy

Restructuring Government Financing for a Sustainable Media Ecosystem

Kim, Y.
Work in Progress (2025)

Abstract

This study analyzes the structural crisis in Korea's media industry financing, examining the 44-year freeze on public broadcasting license fees and the 43.5% collapse in broadcast advertising revenue. We propose a comprehensive policy roadmap including license fee normalization, advertising deregulation, and platform contribution adjustments.

Research Overview

This work-in-progress examines the financing crisis facing Korea’s media ecosystem, proposing structural reforms to ensure long-term sustainability of public service broadcasting and media content production.

Key Issues Identified

1. License Fee Freeze Crisis

  • Duration: 44 years without adjustment (since 1981)
  • Current Fee: 2,500 KRW per month
  • Real Value Loss: 82% decline when adjusted for inflation
  • International Comparison: Significantly below OECD standards

2. Advertising Revenue Collapse

  • 10-Year Decline: 43.5% reduction (2015-2024)
  • Market Shift: Migration to digital platforms
  • Impact: Reduced content production budgets
  • Future Outlook: Continued structural decline

3. Platform Contribution Gap

  • IPTV Growth: Rapid expansion with limited contribution
  • OTT Platforms: Minimal financial contribution to ecosystem
  • Fairness Issues: Uneven burden distribution
  • Regulatory Lag: Policy framework behind market reality

Proposed Policy Framework

Phase 1: Emergency Stabilization (2025-2026)

  • License fee adjustment to minimum sustainable level
  • Temporary advertising regulation relief
  • Platform contribution baseline establishment

Phase 2: Structural Reform (2027-2028)

  • Comprehensive financing model redesign
  • Multi-source funding diversification
  • International best practice adoption

Phase 3: Long-term Sustainability (2029+)

  • Automatic adjustment mechanisms
  • Technology-neutral regulatory framework
  • Performance-based funding allocation

Methodology

Data Sources

  • Korea Communications Commission reports
  • Broadcasting company financial statements
  • OECD media policy database
  • International comparative analysis

Analytical Approach

  • Time-series analysis of revenue structures
  • Stakeholder impact assessment
  • Policy simulation modeling
  • International benchmarking

Expected Contributions

Academic

  • Comprehensive diagnosis of media financing crisis
  • Integrated policy framework development
  • Cross-national comparative insights

Policy

  • Evidence-based reform recommendations
  • Implementation roadmap
  • Stakeholder coordination strategy

Current Status

Stage: Data analysis and policy design
Target Completion: Q2 2025
Planned Submission: Media policy journal

This research complements the “Broadcasting Revenue Structure Analysis (2015-2024)” conference paper, providing deeper policy analysis and international perspectives.